Are there any taxes US companies/citizen has to pay if their software development projects are outsourced to India?
There are no direct tax implications if you pay a US company or a foreign company. There are no tariffs yet for services. However you do not get a W9 from foreign companies. So if you ever get audited, you have to prove it was indeed legit transaction. Most quality Indian software companies have US subsidiary. So you can pay the US company instead of a foreign company.ad of a foreign company.
